01—Abstract
Summary
Summary of the 10-K filed February 27, 2025. Cited figures are marked; the original filing is the authoritative source.
United Airlines Holdings, Inc. (UAL) and its wholly-owned subsidiary United Airlines, Inc. reported 2024 operating revenue of $57.06 billiona, up from $53.72 billion in 2023, and net income of $3.15 billion, compared with $2.62 billion in 2023.
Operating income rose to $5.10 billionb from $4.21 billion, while nonoperating expense, net, was $928 million. Passenger revenue was $51.83 billion, and the company carried approximately 173.6 million passengers. Diluted earnings per share were $9.45, versus $7.89 in 2023.
The company ended 2024 with $14.5 billionc in unrestricted cash, cash equivalents and short-term investments, and operating cash flow of $9.45 billion. Approximately $33.6 billion of debt, finance lease, operating lease and other financial liabilities were outstanding, including $3.9 billion due in the next 12 months. Credit ratings were BB (S&P), Ba2 (Moody's) and BB- (Fitch).
For 2025, the company expects less than $7.0 billiond of adjusted capital expenditures, reflecting certain aircraft delivery delays. The United Next plan calls for over 660 new narrow- and widebody aircraft by the end of 2033, and the company does not currently hedge fuel.
Key risk areas disclosed include dependence on a limited number of aircraft suppliers (Boeing and Airbus), fuel price volatility, labor costs (about 82% of employees are union-represented), intense competition, and a significant debt load. The filing also notes a 2024 temporary grounding of 79 Boeing 737 MAX 9 aircraft and an ongoing DOJ-related antitrust class action on capacity.
02—Key points
Key Highlights
- Total operating revenue rose to $57.06 billion in 2024 from $53.72 billion in 2023, with passenger revenue of $51.83 billion.
- Net income increased to $3.15 billion from $2.62 billion, and diluted EPS was $9.45 versus $7.89.
- Aircraft fuel expense fell to $11.76 billion from $12.65 billion, with an average price of $2.65 per gallon versus $3.01 in 2023.
- Unrestricted cash, cash equivalents and short-term investments totaled $14.5 billion at December 31, 2024.
- Debt and lease-related obligations totaled approximately $33.6 billion, with $3.9 billion due within 12 months; debt prepayments of $10.1 billion were made in 2024.
- A $1.5 billion share repurchase program was authorized in October 2024, with about $1.3 billion remaining as of February 24, 2025.
- Firm orders cover over 660 aircraft under the United Next plan, with expected deliveries through 2033, and 2025 adjusted capex is expected to be less than $7.0 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 27, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $57.06B$53.72B | +6.2% |
| Operating Expenses | $51.97B$49.51B | +5.0% |
| Operating Income | $5.10B$4.21B | +21.0% |
| Net Income | $3.15B$2.62B | +20.3% |
| EPS (Basic) | $9.58$7.98 | +20.1% |
| EPS (Diluted) | $9.45$7.89 | +19.8% |
| Shares Outstanding (Basic) | 328.60M327.80M | +0.2% |
| Shares Outstanding (Diluted) | 333.20M331.90M | +0.4% |
05—Questions
Frequently Asked Questions
How did UAL's profitability change in 2024?
Operating income increased to $5.10 billion from $4.21 billion, and net income rose to $3.15 billion from $2.62 billion. Nonoperating expense, net, was $928 million, compared with $824 million in 2023, driven in part by unrealized losses on investments and debt extinguishment fees.
What is the company's liquidity position?
At December 31, 2024, the company had $14.5 billion in unrestricted cash, cash equivalents and short-term investments, compared with approximately $14.4 billion a year earlier. The company stated it believes this, together with cash from operations, will be sufficient for its liquidity needs for the next 12 months. Its Revolving Credit Facility had $2.965 billion undrawn at year-end.
What are the main risks to investors identified in the filing?
The filing highlights reliance on a limited number of aircraft suppliers, volatile fuel prices with no hedging program currently, a highly unionized workforce with rising labor costs, intense industry competition, and significant financial leverage with non-investment grade credit ratings. It also cites regulatory, environmental and climate-related costs, including CORSIA and SAF mandates.
What is the outlook for capital spending and fleet growth?
For 2025, the company expects less than $7.0 billion of adjusted capital expenditures, reflecting certain aircraft delivery delays. Under United Next, the company expects to take delivery of over 660 new narrow- and widebody aircraft by the end of 2033, and firm commitments are scheduled for delivery through 2033.
Has the company returned capital to shareholders?
The company did not pay cash dividends in 2024 and does not expect to pay them in the foreseeable future. It repurchased 997,076 shares in the fourth quarter of 2024 at an average price of $81.26 under its October 2024 program, and total 2024 repurchases of common stock were $162 million on the cash flow statement.
06—Continue